Mine Power: What Trump 2.0 Means for Mining

WHAT TRUMP 2.0 MEANS FOR MINING

Disruption is the likely watchword as Donald Trump embarks on his second term as U.S. president. What will Trump 2.0 mean for miners, both inside the U.S. and across the globe? An analysis from research firm GlobalData TS Lombard, published in Mining Technology, offers some predictions.

Donald Trump’s victory in the 2024 presidential election, and the Republican control of both houses of Congress, means a united government. At least in theory. The authors expect that a Republican-majority Congress will likely support Trump’s more extreme protectionist and anti-climate policies. They also believe that a united government will present both risks and opportunities for business due to faster and more coordinated legislative and executive action.

Lombard’s assessment focuses on five areas where policies of the new administration  are likely to impact mining.

Bolstering domestic minerals production

The authors note that there is bipartisan support  for reducing reliance on foreign supply chains for critical minerals. They quote Gregory Wischer, founder of critical minerals consultancy Dei Gratia Minerals, who says, “I think you can expect the [Trump] administration to focus heavily on domestic onshoring of all parts of the mineral supply chain, especially mineral extraction.” Lombard expects critical minerals partnerships/alliances outside of the U.S. to continue under Trump, but “possibly with less progress.”

Mining permitting reform

Wischer expects the incoming Trump administration to “significantly prioritise” building more mines, processing facilities and refineries in the US. This means it is likely “to pursue policies streamlining permitting … in an effort to incentivise domestic mineral production.”

However, despite bipartisan support for accelerating permitting, the authors note that the time taken for a new US mine to be developed currently averages 29 years ─ the second longest lead time in the world after Zambia.

Tariffs and US-China decoupling

Trump has been vocal about his plans to impose stricter tariffs, and decoupling from China is expected to continue in his second term.

Clarice Brambilla, energy transition analyst at GlobalData, says, “Regarding mining, the ongoing US-China decoupling will likely continue along its current trajectory under a Trump presidency, given the sharp increase in tariffs already implemented under the Biden administration.”

“However,” she says, “the US remains comparatively weak in the raw materials aspect of key technology value chains, which will hamper its ability to scale the manufacturing of these technologies domestically.”

Repeal of the IRA

The authors believe that “Although a Trump White House is likely to be more supportive to the fossil fuel industry, that does not necessarily mean it will withdraw support for the EV sector. However, Trump may try to roll back the 2022 IRA.”

Although no Republican voted for the IRA, a majority of the benefits from the legislation have flowed to Republican congressional districts. Accordingly, Brambilla believes that the IRA may not be fully repealed. However, “a Republican-controlled Congress could push to scrap certain provisions such as the $7,500 tax credit for EVs.” Even if Trump does repeal the IRA, the expectation is that “he will put something in its place to protect American industry.”

Impact on commodity markets

The authors quote John Sisay, CEO of Consolidated Copper, who says, “When it comes to the commodity markets, a Trump win is likely to mean some short-term turbulence.”  Yet Sisay also believes that energy transition metals will remain a priority.

Read more here.

 

A ROUND-THE-CLOCK CLEAN ALTERNATIVE TO FOSSIL FUELS

Achieving high levels of renewable energy is particularly challenging for off-grid mines in remote locations because intermittent PV or wind with costly batteries still require dirty, expensive diesel for backup. Many mines also require high-grade heat for on-site processing and other uses. 247Solar offers the only renewable energy technologies that:

• Integrate seamlessly with PV or wind to provide 24/7 dispatchable baseload power
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Get in touch to learn more

ELECTRIC MINE CONSORTIUM FINAL REPORT

The fully electric mine is the holy grail of decarbonized mining. A recent final report from the Electric Mine Consortium (EMC) comprehensively describes the progress, obstacles, risks and opportunities leading toward that goal. A four-year collaboration between major Australian miners and other stakeholders, the EMC sought to catalyze action across the industry to reduce dependence on fossil fuels, particularly diesel.

Describing mining electrification as the opportunity of the century, the authors note,”The way the mining industry generates, stores and harnesses energy around the globe is undergoing a period of major change. A rapidly warming planet combined with decreasing costs of clean energy technologies, has led to a global race to shift the industry towards full electrification. The best path to reducing the carbon emissions of mining assets is through a combination of clean energy and electric equipment. These two factors will reduce carbon emissions by over 80% for most mining businesses.”

“The opportunities that this cheap, near ubiquitous energy provides to the mining industry are many and varied. Established relative values of ore bodies and operating assets are likely to shift, new business and operating models will become established at all levels of the industry and traditional diesel supply chains will be relegated.”

As an additional benefit, “Electrified systems will generate more information, analysis and optimisation opportunities, becoming a fundamental enabler of full data-based automation of operations. Electrification is therefore at the centre of two of the biggest shifts that the industry has seen: clean energy and digitisation.”

The authors summarize the benefits of electrified mining in the table at right.

Download the full EMC report here.

 

ULTRA-FAST CHARGING COULD SPEED MINE ELECTRIFICATION

New technology that enables lithium-ion batteries to safely charge in less than 10 minutes could be a boon to miners looking to electrify their haul trucks and other heavy machinery. As reported in PV Magazine, Australian heavy-duty battery and electric vehicle engineering services provider, Switch Technologies, recently demonstrated the first operational vehicle powered new ultra-fast charging technology from United Kingdom-based Echion Technologies.

Echion’s XNO active anode material technology enables lithium-ion batteries to safely fast charge in less than ten minutes, maintain high energy densities even at extreme temperatures, and deliver high-power across a cycle life of more than 10,000 cycles. According to the company, the material has been specially engineered to enable electrified heavy-duty vehicles to operate with the highest productivity and lowest total cost of ownership.

PV’s Ev Foley quotes Switch Technologies Chief Executive Officer Jan Haak saying, “Mining customers are telling us that they’ll be able to operate the vehicle as a pure EV for a whole shift, with the confidence of a full range diesel machine should they need a longer trip, and being able to fully charge in less than ten minutes removes friction that operators experience with conventional EV systems on site.”

Echelon expects that this small-scale demonstration will lead to larger vehicles that can accelerate the decarbonization of the mining sector.

Read more here.

 

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